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Oct 15, 2013

Insight: Three years on, Fed keeps BoA-Merrill waiting on commodity trade

NEW YORK (Reuters) – In May 2010, one of Wall Street’s biggest banks went to the Federal Reserve with a seemingly straightforward request: permission to expand its physical commodity operations through specialized power contracts.

The regulator had already given rivals the go-ahead for such “tolling” arrangements that allowed long-term business deals with electricity plants, and now Bank of America-Merrill Lynch (BoA-ML) wanted similar treatment as it aimed at becoming a top-three bank in the natural resources supply chain.

Oct 15, 2013

Three years on, Fed keeps BoA-Merrill waiting on commodity trade

NEW YORK, Oct 15 (Reuters) – In May 2010, one of Wall Street’s biggest banks went to the
Federal Reserve with a seemingly straightforward request: permission to expand its physical
commodity operations through specialized power contracts.

The regulator had already given rivals the go-ahead for such “tolling” arrangements that
allowed long-term business deals with electricity plants, and now Bank of America-Merrill Lynch
(BoA-ML) wanted similar treatment as it aimed at becoming a top-three bank in the
natural resources supply chain.

Sep 27, 2013

Oil falls as U.S. and Iran look for nuclear deal

NEW YORK, Sept 27 (Reuters) – Oil fell on Friday as tensions
eased between the United States and Iran, culminating in the
first phone call between the two countries’ presidents since
1979 and a pledge to work swiftly toward an agreement on Iran’s
nuclear program.

U.S. President Barack Obama said there was a “unique
opportunity” to make progress on longstanding tension around
Iran’s nuclear program, which has led to western sanctions
against the country that have curtailed its oil exports.

Sep 23, 2013

Fed leaves banks hanging as commodity asset deadline passes

NEW YORK (Reuters) – The future of Goldman Sachs’ and Morgan Stanley’s commodity businesses faces even greater uncertainty after a key deadline for them to conform their physical trading to U.S. regulations expired at the weekend without word from the Federal Reserve.

The Fed’s silence leaves the two banks even more unsure about whether they will be able to continue owning and operating physical commodity trading assets, from power plants to metal warehouses, and the banks questioning whether the long-running issue has now been swept into a broader Fed review of the role of Wall Street in physical markets.

Sep 19, 2013

Wall Street launches defense of physical commodities role

NEW YORK (Reuters) – Wall Street launched its first concerted defense of its role in physical commodity markets on Thursday, funding a report that highlighted the risks of banks being pushed out of the sector by political and regulatory pressure, and gaining support from an influential trade group.

The report commissioned by Wall Street’s largest lobby group, the Securities Industry and Financial Markets Association (SIFMA), said banks play a small but vital role in the natural resources supply chain. Their ability to trade in the underlying commodities – not just financial derivatives – helped markets function.

Sep 19, 2013

Wall St.-funded report defends banks’ commodities role

NEW YORK, Sept 19 (Reuters) – A report funded by Wall
Street’s largest lobby group laid out the most public
justification yet of banks’ role in physical commodity markets,
a lucrative business now under threat from mounting political
and regulatory pressure.

The report by IHS Global, commissioned by the Securities
Industry and Financial Markets Association (SIFMA), said that
banks play a small but vital role in the natural resources
supply chain, and that the ability to trade in the underlying
commodities – not just derivatives – was significant.

Sep 19, 2013

Wall Street-funded report defends banks’ role in physical commodities

NEW YORK (Reuters) – A report funded by Wall Street’s largest lobby group laid out the most public justification yet of banks’ role in physical commodity markets, a lucrative business now under threat from mounting political and regulatory pressure.

The report by IHS Global, commissioned by the Securities Industry and Financial Markets Association (SIFMA), said that banks play a small but vital role in the natural resources supply chain, and that the ability to trade in the underlying commodities – not just derivatives – was significant.

Sep 11, 2013

After Goldman’s oil burned, banks face day of reckoning on commodities

NEW YORK, Sept 11 (Reuters) – On a sunny summer morning last
month, a quiet Sacramento suburb was suddenly shaken by an
explosion at the Elk Grove refinery, a small industrial plant
that produces asphalt.

Local firefighters rushed to battle the blaze, which was
generating a “substantial” plume of black smoke and alarming
local residents living just a few hundred feet away. A number of
them called 911 to report the incident, said Consumnes Fire
Department Deputy Chief John Michelini.

Aug 29, 2013

Oil slides as Syria action timeline pushed back

NEW YORK, Aug 29 (Reuters) – Oil prices on both sides of the
Atlantic extended losses to around 2 percent in late trading
after the market settled on Thursday as uncertainty rose over
the timing of a possible U.S.-led strike on Syria.

In a day of volatile trading that followed the biggest
two-day rally in Brent crude since January 2012, traders booked
profits ahead of the U.S. holiday weekend as President Barack
Obama and his allies sought to convince cautious lawmakers and
the public of the need to strike Syria.

Aug 26, 2013

Brent oil hits 5-month high on Syria, settles lower on US data

NEW YORK, Aug 26 (Reuters) – Brent crude oil prices hit a
five-month high above $111 a barrel on Monday as the United
States signalled it was edging toward a possible military
response to last week’s suspected chemical attack in Syria, but
prices settled slighty lower in choppy trade as weak U.S.
economic data weighed.

In the most forceful U.S. reaction yet since Wednesday’s
suspected chemical attack, Secretary of State John Kerry accused
the Syrian government of an attempted cover up and said
President Barack Obama “believes there must be accountability
for those who would use the world’s most heinous weapons against
the world’s most vulnerable people.”